Download - Salzgitter AG

Sales in the Technology Division in the second half-year of 2007 (€ 566 million) were notably higher
than the previous year’s figure owing to high capacity utilization. KHS was the mainstay (sales: € 509
million), but the smaller companies also generated growth. Price wars in the competitive environment
of KHS abated after the takeover of a majority holding in KWAG by Salzgitter. The margins gradually
stabilized.
Technology Division Sales
0 100 200 300 400 500 600
in € mil. 2H07
The operating profit of the Technology Division posted € 18.0 million.
Taking account of the one-off effects caused by the mandatory purchase price allocation required
by IFRS (€ –14.0 million), mainly in relation to inventory valuation, pre-tax profit came to € 4.0 million.
Technology Division EBT
0 1 2 3 4 5
in € mil. 2H07
As per December 31, 2007, the Technology Division had a core workforce of 4,252 employees. The
extremely high levels of capacity utilization seen in the KHS Group throughout the financial year 2007
caused employee numbers to rise considerably, the aim being to reduce dependency on external companies,
among other factors. The increase in the workforce mainly affects the production sites of KHS
in Germany and Brazil. On the reporting date, KHS’s Chinese subsidiary employed 963 people. This
company was not consolidated. Changes in the Other Industrial Holdings segment were only slight.
4.0
566